According to sources close to Coinlive, Virtual Assets Regulatory Authority (VARA), Dubai's crypto regulator, has purportedly banned Islamic Coin (ISLM) following an ongoing investigation that revealed a million-dollar wallet associated with terrorist financing and money laundering.

Coinlive has reached out to VARA for comment.

Already Under Scrutiny

Bored Gen DMCC (BG), the parent entity of Islamic Coin, had been under VARA's scrutiny regarding the legal issuance, marketing, and distribution of the token.

Despite full cooperation from BG during VARA's review, the regulatory body had then considered the issues under investigation as technical "non-compliance".

During the review, BG implemented remedial measures, including enhanced public disclosures for market assurance.

However, this appears to have backfired, with their transparency uncovering a wallet that was used towards terrorist financing and money laundering.

VARA's ban implies that BG cannot secure approvals for ISLM distribution in the Dubai market.

Until approval is granted, any domestic promotion or access facilitation is prohibited.

The token has also recently gained listing on Gate.io.

Terrorist Financing

Experts, specializing in studying Hamas' financial mechanisms, note that crypto remains a significant resource for the group's fundraising efforts.

This includes acquiring funds from Gaza and across the Egyptian border.

In October, VARA highlighted that BG lacked the necessary licensing or registration as a virtual assets issuer, putting its activities in violation of the regional regulatory framework.

Coinlive previously wrote an opinion piece on how ISLM might have been a key funding component towards the Israel-Hamas war.

Related Article - What is Hamas' Alternative to Bitcoin?